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Suing Google at Google’s workshop for children

 


The Second Circuit Court of Appeals abolishes and remands the dismissal of the district court in trademark disputes due to lack of jurisdiction over the subject matter, and that the disputes are not a matter of jurisdiction but a contractual position. I took note of. SMKids, LLC v. Google LLC, Alphabet Inc., Case No. 19-cv-2547 (2d Cir. June 25, 2020) (Parker, J.).

In 1997, Googles Childrens Workshop registered the trademark GOOGLES and the internet domain name www.googles.com. The website was launched in 1998 and focused on children’s education and entertainment. In the same year, Google adopted that name and registered the GOOGLE mark in 2004. In 2005, the founder of the Google Children’s Workshop sued Google for trademark infringement.

In 2007, the founder of the Google Children’s Workshop assigned all rights of the GOOGLES mark to Stelor Productions. In 2008, Stelor and Google settled a trademark infringement dispute. Google has agreed not to purposefully make material changes to the offering of its products and services at the time in a potentially confusing way in connection with the Children’s Workshop mark GOOGLES. Specifically, Google has agreed not to create, develop, or publish children’s books or fictitious children’s content titled GOOGLE or GOOGLE-.

In 2011, after the bankruptcy proceedings, Steller assigned the rights of the GOOGLES mark to Steven Gartsch, the company’s principal investor. At that point, Google’s website is still functional, but static and obsolete. In 2013, Garchik replaced the content of Google’s website with an upcoming page, added some content, and transferred Google’s assets to his company, SJM Partners. Five years later, SJM transferred its assets to SM Kids, a newly established company owned by Garchik. In February 2018, SM Kids sued Google and its affiliates for breaching the 2008 settlement agreement. SM Kids claimed that Google violated the agreement by creating Google Play and YouTube Kids. These publish and distribute content for children. SM Kids also opposed Google’s acquisition of several kids entertainment businesses, including Launchpad Toys and Toontastic applications.

Google has decided to dismiss the complaint in accordance with Rules 12(b)(1) and 12(b)(6). Google claimed that SM Kids was not the owner of the GOOGLES mark. Because the trademark must actually be used in the market. Google argued that SM Kids was not in a position to sue because the trademark could not be assigned because it was not used in commerce and only the owner of the trademark could enforce the settlement agreement. The district court postponed the case and ordered a discovery on permanent and subject matter jurisdiction issues. After the discovery, Google renewed the motion to dismiss only in accordance with Rule 12(b)(1). Relying on materials other than complaints that occurred during discovery, the district court successfully acquired the trademark because SM Kids assigned the trademark to SM Kids because the trademark was not used in commerce from 2010 to 2018. It was certified that it did not show that. The district court treated the flaw as jurisdiction and granted Google a motion to dismiss. SM Kids appealed.

The Second Circuit did not agree with this, explaining that the validity of the settlement agreement is not a matter of status under Article III, but a matter of contractual status not relevant to the subject jurisdiction. Article III status has three requirements. The plaintiff is (1) actually injured, (2) reasonably traceable to the defendant’s challenged action, and (3) likely to be remedied by a favorable judicial decision. The Circuit Court suspended the claims that the availability of Google content for SM Kids, who allegedly breached the settlement agreement, undermined the popularity of SM Kids Google content, thereby causing financial injuries to SM Kids. Or found that it could be remedied by financial relief. As a result, the court found that the requirements of Section III were met.

The Second Circuit also noted that the US Supreme Court warned lower courts not to read the restrictions of jurisdiction into substantive legal provisions. The relevant provisions of the Lanham Act for the assignment of trademarks are 15 USC 1060, which states that trademarks can only be transferred in good faith in the business in which they are used. There is no law that refers to jurisdiction. The Second Circuit warned that if the law did not explicitly state that the matter was jurisdiction, the court should consider any limitation of law to be non-jurisdiction. The Second Circuit noted this as an easy-to-manage emission line test.

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